Letter From CME Chairman To Members on Demutualization

Dear Fellow Member: I am very pleased to report that yesterday, our Board of Directors addressed one of most important issues in our history: whether and how to demutualize our Exchange and turn our esteemed member-run institution into a for-profit entity. As you will recall, we were the first U.S. financial exchange to support this concept and are now the first to construct a concrete plan. The Strategic Planning Committee, chaired by James Oliff, in conjunction with our investment banking advisers, Salomon Smith Barney, have worked long and hard to develop a comprehensive plan that addresses the myriad facets of such a transaction and boldly leads us into the next century. Because of the tremendous complexities involved, the Board will continue its discussions and analysis over several meetings throughout the rest of the month. During this time, and because our discussions are both ongoing and extremely sensitive, the Board is subject to a strict oath of confidentiality. I appeciate your patience and ask that you please respect this pledge until we finalize our discussions in the coming weeks. It is our goal to share the details with you at the Annual Meeting on Tuesday, November 2. Of course, subject to Board approval, you will have the opportunity to vote on the plan after you have been informed of the details.